Frequently asked questions about the sales
Here you can find frequently asked questions and answers about the sales of state-owned companies.
- Why does the Government want to reduce state ownership?
- How much is the state going to sell?
- Which companies is the Government intending to reduce state ownership in?
- What has been done so far?
- Who is responsible for the sales?
- How will the sales take place?
- What is the next step?
- Will Swedish private individuals be invited to buy shares in the companies that are sold?
- Will the state-owned companies be sold to foreign owners?
Why does the Government want to reduce state ownership?
The State should provide the business sector with good conditions, make the rules and ensure that they're obeyed. However, the state shouldn't be a player. This is why the Government considers that state should reduce its ownership of companies that operate on wholly commercial, competitive markets where there is free entry.
The Government considers that these companies where state ownership is to be reduced would have better growth prospects and contribute to a positive employment trend with other owners.
The Government wants our generation to hand down less debt to the next generation. At present, the demographic structure is favourable with many people of working age. However, in the future, fewer people will have to provide for more people. For this reason, the Government is going to use the sales revenue to pay off the government debt, and not for income tax cuts or for current expenses for health care, education or care of children and the elderly. A lower debt burden will improve the prospects of meeting the state's commitments without having to borrow money for current expenses.
As the money received from the sale will only be used to pay off the central government debt, the Government will be able to reduce state ownership when an opportunity for a good deal arises.
How much is the state going to sell?
The Government considers that sales corresponding to SEK 50 billion a year for the next three years is a reasonable forecast. This corresponds to a reduction of state holdings of a total of SEK 150 billion. The Riksdag has approved the Governments proposal to reduce the states stake in six companies. These are Nordea, OMX, SBAB, TeliaSonera, Vasakronan and Vin & Sprit.
UpWhich companies is the Government intending to reduce state ownership in?
The Government intends to reduce state ownership in Nordea, OMX, SBAB, TeliaSonera, Vasakronan and Vin&Sprit in the first phase. A review is also taking place of the reasons for government ownership of other companies. However, the Government has declared that Vattenfall and LKAB will not be sold during this period of office.
UpWhat has been done so far?
So far, the Government has presented a Bill to the Riksdag, requesting authorisation to sell the three unlisted companies Vasakronan, Vin & Sprit and SBAB. Previously the Government had already requested and received authorisation to reduce state ownership of the three listed companies TeliaSonera, Nordea and OMX. The Government Bill proposed that the Government could accept other means of payment, such as shares, rather than cash in the event of a sale of the three listed companies. The Bill was processed and approved by the Riksdag in spring 2007.
During spring 2007, the Government sold parts of the state's holdings of TeliaSonera shares. In total, 8 per cent of the outstanding shares were sold at a value of SEK 18 billion. The receipts were used to pay off national debt. This transaction has left the state with a 37.3 per cent stake in TeliaSonera.
Preparations are also underway ahead of possible future sales. These preparations include developing and evaluating different courses of action.
Who is responsible for the sales?
Minister Mats Odell is responsible for the management and sales of the six companies that the Government has so far decided to sell, i.e. Nordea, OMX, SBAB, TeliaSonera, Vasakronan and Vin&Sprit.
UpHow will the sales take place?
The sale of the state-owned companies must take place in a responsible way to provide the taxpayer with the greatest value for money. Different sales alternatives will be reviewed in detail, after which a sale can take place. The Government does not have a timetable or a list of priorities, but will conduct a sale when it can get a good deal for the national economy. After examining the different sales options, the Government will identify the option that is judged, all things considered, to make the best business sense.
UpWhat is the next step?
The Government has submitted a proposal to the Riksdag. In this Bill the Government requests authorisation to reduce or eliminate ownership in the three unlisted companies, Vasakronan, SBAB and Vin&Sprit. Approval has already been given for the three listed companies, Nordea, Telia Sonera and OMX. The Riksdag will consider the Bill during the spring and this process will probably have been completed before the summer. During this period, the Government will prepare sales of these six companies by a thorough examination and evaluation of the various sales alternatives.
UpWill Swedish private individuals be invited to buy shares in the companies that are sold?
The Government will consider different sales alternatives for each of the companies in question. Among the alternatives considered, is listing or sales of sales on the stock exchange. Swedish private individuals will also be able to take part in a sale of this kind.
UpWill the state-owned companies be sold to foreign owners?
The Government will consider different sales alternatives for each of the companies in question. The alternatives being considered include selling to a foreign owner or carrying out a structural transaction, for instance, a merger with a foreign company. The overall objective is to find the option that, all things considered, is judged to make the best business sense.
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